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Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of composition of loans portfolio

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:


	September 30,		December 31,
	2023		2022
	(In thousands)
Real estate mortgage	$	14,056,774	$	15,762,351
Real estate construction and land (1)	2,761,643		4,221,853
Commercial	4,756,921		8,297,182
Consumer	394,451		444,630
Total gross loans and leases held for investment	21,969,789		28,726,016
Deferred fees, net	(48,843)		(116,887)
Total loans and leases held for investment, net of deferred fees	21,920,946		28,609,129
Allowance for loan and lease losses	(222,297)		(200,732)
Total loans and leases held for investment, net (2)	$	21,698,649	$	28,408,397

____________________

(1) Includes land and acquisition and development loans of $215.4 million and $153.5 million at September 30, 2023 and December 31, 2022.

(2) Excludes accrued interest receivable of $95.4 million and $124.3 million at September 30, 2023 and December 31, 2022, respectively, which is recorded in "Other assets" on the condensed consolidated balance sheets.

Delinquent loans in loan portfolio

The following tables present an aging analysis of our loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	September 30, 2023
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	1,224	$	17,906	$	19,130	$	3,507,178	$	3,526,308
Multi-family	—		—		—		5,279,659		5,279,659
Other residential	45,992		58,617		104,609		5,123,915		5,228,524
Total real estate mortgage	47,216		76,523		123,739		13,910,752		14,034,491
Real estate construction and land:
Commercial	—		—		—		465,266		465,266
Residential	—		—		—		2,272,271		2,272,271
Total real estate construction and land	—		—		—		2,737,537		2,737,537
Commercial:
Asset-based	—		363		363		2,287,530		2,287,893
Venture capital	—		—		—		1,464,160		1,464,160
Other commercial	500		251		751		1,001,626		1,002,377
Total commercial	500		614		1,114		4,753,316		4,754,430
Consumer	2,254		190		2,444		392,044		394,488
Total	$	49,970	$	77,327	$	127,297	$	21,793,649	$	21,920,946


	December 31, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	1,721	$	29,269	$	30,990	$	3,815,841	$	3,846,831
Multi-family	—		—		—		5,607,865		5,607,865
Other residential	101,728		39,875		141,603		6,134,025		6,275,628
Total real estate mortgage	103,449		69,144		172,593		15,557,731		15,730,324
Real estate construction and land:
Commercial	—		—		—		898,592		898,592
Residential	—		—		—		3,253,580		3,253,580
Total real estate construction and land	—		—		—		4,152,172		4,152,172
Commercial:
Asset-based	—		434		434		5,139,775		5,140,209
Venture capital	—		—		—		2,033,302		2,033,302
Other commercial	461		1,195		1,656		1,106,795		1,108,451
Total commercial	461		1,629		2,090		8,279,872		8,281,962
Consumer	1,935		149		2,084		442,587		444,671
Total	$	105,845	$	70,922	$	176,767	$	28,432,362	$	28,609,129

Financing Receivable, Nonaccrual

The following table presents our nonaccrual and performing loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	September 30, 2023						December 31, 2022
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	31,465	$	3,494,843	$	3,526,308	$	42,509	$	3,804,322	$	3,846,831
Multi-family	—		5,279,659		5,279,659		—		5,607,865		5,607,865
Other residential	88,329		5,140,195		5,228,524		55,893		6,219,735		6,275,628
Total real estate mortgage	119,794		13,914,697		14,034,491		98,402		15,631,922		15,730,324
Real estate construction and land:
Commercial	—		465,266		465,266		—		898,592		898,592
Residential	—		2,272,271		2,272,271		—		3,253,580		3,253,580
Total real estate construction and land	—		2,737,537		2,737,537		—		4,152,172		4,152,172
Commercial:
Asset-based	363		2,287,530		2,287,893		865		5,139,344		5,140,209
Venture capital	2,001		1,462,159		1,464,160		—		2,033,302		2,033,302
Other commercial	3,031		999,346		1,002,377		4,345		1,104,106		1,108,451
Total commercial	5,395		4,749,035		4,754,430		5,210		8,276,752		8,281,962
Consumer	207		394,281		394,488		166		444,505		444,671
Total	$	125,396	$	21,795,550	$	21,920,946	$	103,778	$	28,505,351	$	28,609,129

CV of loans held for investment by class by performing and nonperforming

The following tables present the credit risk rating categories for loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	September 30, 2023
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	34,018	$	127,716	$	3,364,574	$	3,526,308
Multi-family	70,809		45,646		5,163,204		5,279,659
Other residential	96,208		46,761		5,085,555		5,228,524
Total real estate mortgage	201,035		220,123		13,613,333		14,034,491
Real estate construction and land:
Commercial	—		—		465,266		465,266
Residential	—		2,640		2,269,631		2,272,271
Total real estate construction and land	—		2,640		2,734,897		2,737,537
Commercial:
Asset-based	2,602		12,552		2,272,739		2,287,893
Venture capital	2,001		100,533		1,361,626		1,464,160
Other commercial	5,079		16,036		981,262		1,002,377
Total commercial	9,682		129,121		4,615,627		4,754,430
Consumer	378		8,247		385,863		394,488
Total	$	211,095	$	360,131	$	21,349,720	$	21,920,946


	December 31, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	43,737	$	106,493	$	3,696,601	$	3,846,831
Multi-family	3,611		60,330		5,543,924		5,607,865
Other residential	60,557		58,063		6,157,008		6,275,628
Total real estate mortgage	107,905		224,886		15,397,533		15,730,324
Real estate construction and land:
Commercial	—		91,334		807,258		898,592
Residential	—		45,155		3,208,425		3,253,580
Total real estate construction and land	—		136,489		4,015,683		4,152,172
Commercial:
Asset-based	865		56,836		5,082,508		5,140,209
Venture capital	2,753		127,907		1,902,642		2,033,302
Other commercial	6,473		13,233		1,088,745		1,108,451
Total commercial	10,091		197,976		8,073,895		8,281,962
Consumer	275		6,908		437,488		444,671
Total	$	118,271	$	566,259	$	27,924,599	$	28,609,129

Finance Receivable Investment And Interest Income, Nonaccrual

The following table presents our nonaccrual loans and leases by loan portfolio segment and class and by with and without an allowance recorded as of the date indicated and interest income recognized on nonaccrual loans and leases for the periods indicated:


			Three Months		Nine Months				Three Months		Nine Months
			Ended		Ended				Ended		Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2023		2023		2023		2022		2022		2022
	Nonaccrual		Interest		Interest		Nonaccrual		Interest		Interest
	Recorded		Income		Income		Recorded		Income		Income
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	55	$	—	$	—	$	15,546	$	—	$	—
Multi-family	—		—		—		—		—		—
Other residential	372		—		—		5,515		—		—
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	—		—		—		—		—		—
Commercial:
Asset-based	—		—		—		587		—		—
Venture capital	2,001		—		—		3,809		—		—
Other commercial	672		—		—		933		—		—
Consumer	207		—		—		367		—		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	31,410	$	24	$	80	$	27,227	$	16	$	113
Multi-family	—		—		—		—		—		—
Other residential	87,957		—		—		27,535		—		—
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	—		—		—		—		—		—
Commercial:
Asset-based	363		—		—		1,539		—		—
Venture capital	—		—		—		—		—		—
Other commercial	2,359		8		8		6,684		7		368
Consumer	—		—		—		—		—		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	119,794	$	24	$	80	$	75,823	$	16	$	113
Real estate construction and land	—		—		—		—		—		—
Commercial	5,395		8		8		13,552		7		368
Consumer	207		—		—		367		—		—
Total	$	125,396	$	32	$	88	$	89,742	$	23	$	481

Finance Receivable, Loans By Origination Year

The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the dates indicated:


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2023	2023		2022		2021		2020		2019		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	3,796	$	4,205	$	12,066	$	10,115	$	45,592	$	1	$	—	$	75,775
3-4 Pass	64,276		529,602		461,834		423,663		246,735		1,469,757		81,930		11,002		3,288,799
5 Special mention	—		9,440		3,582		25,524		17,707		71,463		—		—		127,716
6-8 Classified	767		—		529		445		2,320		29,957		—		—		34,018
Total	$	65,043	$	542,838	$	470,150	$	461,698	$	276,877	$	1,616,769	$	81,931	$	11,002	$	3,526,308
Current YTD period:
Gross charge-offs	$	34	$	—	$	—	$	—	$	76	$	11,749	$	—	$	—	$	11,859

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	28,202	$	108,713	$	32,008	$	54,599	$	104,919	$	—	$	—	$	328,441
3-4 Pass	14,620		1,862,698		1,049,254		527,957		541,671		781,555		57,008		—		4,834,763
5 Special mention	—		—		—		4,684		11,283		29,679		—		—		45,646
6-8 Classified	—		—		6,000		8,600		25,639		30,570		—		—		70,809
Total	$	14,620	$	1,890,900	$	1,163,967	$	573,249	$	633,192	$	946,723	$	57,008	$	—	$	5,279,659
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	2,000	$	—	$	2,000
3-4 Pass	197,921		1,883,380		2,820,056		68,000		—		17,838		96,268		92		5,083,555
5 Special mention	560		37,834		8,133		234		—		—		—		—		46,761
6-8 Classified	5,975		49,839		36,464		2,001		—		1,794		—		135		96,208
Total	$	204,456	$	1,971,053	$	2,864,653	$	70,235	$	—	$	19,632	$	98,268	$	227	$	5,228,524
Current YTD period:
Gross charge-offs	$	2,613	$	19,512	$	4,831	$	648	$	—	$	4	$	—	$	—	$	27,608

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2023	2023		2022		2021		2020		2019		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	17,882		225,324		126,548		46,398		26,111		5,717		17,286		—		465,266
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	17,882	$	225,324	$	126,548	$	46,398	$	26,111	$	5,717	$	17,286	$	—	$	465,266
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	35,715		989,759		676,122		425,418		—		26,825		115,792		—		2,269,631
5 Special mention	—		—		2,640		—		—		—		—		—		2,640
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	35,715	$	989,759	$	678,762	$	425,418	$	—	$	26,825	$	115,792	$	—	$	2,272,271
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	17,130	$	255,800	$	215,483	$	57,083	$	157,873	$	294,245	$	83,666	$	—	$	1,081,280
3-4 Pass	127,180		250,748		150,262		21,622		11,048		28,488		598,257		3,854		1,191,459
5 Special mention	—		126		—		61		—		—		12,348		17		12,552
6-8 Classified	—		—		—		—		—		363		2,239		—		2,602
Total	$	144,310	$	506,674	$	365,745	$	78,766	$	168,921	$	323,096	$	696,510	$	3,871	$	2,287,893
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	150	$	150

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(135)	$	(8)	$	—	$	1,998	$	—	$	—	$	126,514	$	(448)	$	127,921
3-4 Pass	60,919		137,098		127,975		6,558		6,222		1,022		837,749		56,162		1,233,705
5 Special mention	3,501		3,000		28,844		2,828		19,985		—		37,381		4,994		100,533
6-8 Classified	—		—		2,001		—		—		—		—		—		2,001
Total	$	64,285	$	140,090	$	158,820	$	11,384	$	26,207	$	1,022	$	1,001,644	$	60,708	$	1,464,160
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2023	2023		2022		2021		2020		2019		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	685	$	2,092	$	5,800	$	(43)	$	41	$	(10)	$	21,465	$	—	$	30,030
3-4 Pass	6,739		79,039		268,135		47,241		35,457		114,407		397,182		3,032		951,232
5 Special mention	1,748		2,710		764		643		—		2,322		7,754		95		16,036
6-8 Classified	—		—		—		—		261		1,938		1,650		1,230		5,079
Total	$	9,172	$	83,841	$	274,699	$	47,841	$	35,759	$	118,657	$	428,051	$	4,357	$	1,002,377
Current YTD period:
Gross charge-offs	$	—	$	6,699	$	—	$	—	$	28	$	67	$	516	$	359	$	7,669

Consumer
Internal risk rating:
1-2 High pass	$	—	$	29	$	24	$	5	$	—	$	—	$	1,298	$	—	$	1,356
3-4 Pass	66		57,602		202,816		18,240		41,303		57,872		6,608		—		384,507
5 Special mention	—		1,938		4,752		261		1,193		—		103		—		8,247
6-8 Classified	—		80		—		50		93		137		1		17		378
Total	$	66	$	59,649	$	207,592	$	18,556	$	42,589	$	58,009	$	8,010	$	17	$	394,488
Current YTD period:
Gross charge-offs	$	—	$	316	$	539	$	76	$	238	$	332	$	1	$	12	$	1,514

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	17,680	$	289,911	$	334,225	$	103,117	$	222,628	$	444,746	$	234,944	$	(448)	$	1,646,803
3-4 Pass	525,318		6,015,250		5,883,002		1,585,097		908,547		2,503,481		2,208,080		74,142		19,702,917
5 Special mention	5,809		55,048		48,715		34,235		50,168		103,464		57,586		5,106		360,131
6-8 Classified	6,742		49,919		44,994		11,096		28,313		64,759		3,890		1,382		211,095
Total	$	555,549	$	6,410,128	$	6,310,936	$	1,733,545	$	1,209,656	$	3,116,450	$	2,504,500	$	80,182	$	21,920,946
Current YTD period:
Gross charge-offs	$	2,647	$	26,527	$	5,370	$	724	$	342	$	12,152	$	517	$	521	$	48,800

______________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	4,957	$	3,791	$	7,215	$	26,132	$	4,690	$	35,343	$	1,290	$	—	$	83,418
3-4 Pass	537,931		501,576		467,792		322,448		539,701		1,148,386		85,284		10,065		3,613,183
5 Special mention	—		—		728		16,394		2,294		87,077		—		—		106,493
6-8 Classified	—		559		464		1,310		27,396		14,008		—		—		43,737
Total	$	542,888	$	505,926	$	476,199	$	366,284	$	574,081	$	1,284,814	$	86,574	$	10,065	$	3,846,831
Current YTD period:
Gross charge-offs	$	—	$	67	$	—	$	79	$	2,258	$	326	$	—	$	—	$	2,730

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	89,251	$	19,945	$	58,275	$	66,219	$	69,805	$	—	$	—	$	303,495
3-4 Pass	1,940,337		1,084,467		523,645		676,169		446,987		511,185		57,639		—		5,240,429
5 Special mention	—		—		4,944		16,974		7,003		31,409		—		—		60,330
6-8 Classified	—		—		—		—		2,750		861		—		—		3,611
Total	$	1,940,337	$	1,173,718	$	548,534	$	751,418	$	522,959	$	613,260	$	57,639	$	—	$	5,607,865
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	1,000	$	—	$	1,000
3-4 Pass	2,805,533		3,200,013		83,580		—		237		20,394		46,155		96		6,156,008
5 Special mention	27,272		25,766		4,916		—		109		—		—		—		58,063
6-8 Classified	19,248		33,218		5,333		—		—		2,555		—		203		60,557
Total	$	2,852,053	$	3,258,997	$	93,829	$	—	$	346	$	22,949	$	47,155	$	299	$	6,275,628
Current YTD period:
Gross charge-offs	$	249	$	1,084	$	912	$	—	$	—	$	81	$	—	$	—	$	2,326

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	299,538		170,397		74,634		237,294		17,763		7,632		—		—		807,258
5 Special mention	—		—		—		—		91,334		—		—		—		91,334
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	299,538	$	170,397	$	74,634	$	237,294	$	109,097	$	7,632	$	—	$	—	$	898,592
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	605,683		1,302,061		844,041		282,076		125,805		204		48,555		—		3,208,425
5 Special mention	—		—		—		45,155		—		—		—		—		45,155
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	605,683	$	1,302,061	$	844,041	$	327,231	$	125,805	$	204	$	48,555	$	—	$	3,253,580
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	225,140	$	209,272	$	57,727	$	202,063	$	121,600	$	208,542	$	850,031	$	—	$	1,874,375
3-4 Pass	547,675		188,269		52,711		35,811		33,426		40,714		2,239,785		69,742		3,208,133
5 Special mention	—		—		—		43,409		—		3,505		9,922		—		56,836
6-8 Classified	—		—		—		—		—		434		—		431		865
Total	$	772,815	$	397,541	$	110,438	$	281,283	$	155,026	$	253,195	$	3,099,738	$	70,173	$	5,140,209
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	750	$	—	$	750

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(40)	$	—	$	2,000	$	—	$	134	$	3	$	216,535	$	503	$	219,135
3-4 Pass	92,015		136,296		18,075		3,705		1,833		910		1,365,101		65,572		1,683,507
5 Special mention	13,970		40,924		4,483		23,202		—		—		40,335		4,993		127,907
6-8 Classified	—		2,753		—		—		—		—		—		—		2,753
Total	$	105,945	$	179,973	$	24,558	$	26,907	$	1,967	$	913	$	1,621,971	$	71,068	$	2,033,302
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	940	$	—	$	940

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	3,591	$	10,880	$	12	$	161	$	3	$	14	$	20,958	$	—	$	35,619
3-4 Pass	84,930		278,208		54,542		41,908		47,771		87,645		454,438		3,684		1,053,126
5 Special mention	7,038		796		184		695		1,526		2,858		47		89		13,233
6-8 Classified	—		806		—		319		(3)		2,653		1,600		1,098		6,473
Total	$	95,559	$	290,690	$	54,738	$	43,083	$	49,297	$	93,170	$	477,043	$	4,871	$	1,108,451
Current YTD period:
Gross charge-offs	$	—	$	209	$	—	$	1	$	—	$	2,537	$	1,906	$	474	$	5,127

Consumer
Internal risk rating:
1-2 High pass	$	34	$	30	$	7	$	—	$	1	$	—	$	854	$	—	$	926
3-4 Pass	62,868		226,084		20,798		48,542		31,693		37,838		8,739		—		436,562
5 Special mention	1,252		3,490		464		1,126		278		238		60		—		6,908
6-8 Classified	47		—		—		59		79		74		—		16		275
Total	$	64,201	$	229,604	$	21,269	$	49,727	$	32,051	$	38,150	$	9,653	$	16	$	444,671
Current YTD period:
Gross charge-offs	$	309	$	529	$	237	$	728	$	—	$	354	$	—	$	7	$	2,164

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	233,682	$	313,224	$	86,906	$	286,631	$	192,647	$	313,707	$	1,090,668	$	503	$	2,517,968
3-4 Pass	6,976,510		7,087,371		2,139,818		1,647,953		1,245,216		1,854,908		4,305,696		149,159		25,406,631
5 Special mention	49,532		70,976		15,719		146,955		102,544		125,087		50,364		5,082		566,259
6-8 Classified	19,295		37,336		5,797		1,688		30,222		20,585		1,600		1,748		118,271
Total	$	7,279,019	$	7,508,907	$	2,248,240	$	2,083,227	$	1,570,629	$	2,314,287	$	5,448,328	$	156,492	$	28,609,129
Current YTD period:
Gross charge-offs	$	558	$	1,889	$	1,149	$	808	$	2,258	$	3,298	$	3,596	$	481	$	14,037

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

Finance Receivable, Loan Restructuring and Refinancing, Amortized Costs Balance

The following table presents our loan modifications made to borrowers experiencing financial difficulty by type of modification for the period indicated with related amortized cost balances as of the date indicated:


	Three Months Ended September 30, 2023
	Loan Modifications
	Balances (Amortized Cost Basis) at
	September 30, 2023
									Combination - Term
									Extension and
									Interest Rate				Total Loan
	Term Extension				Payment Delay				Reduction				Modifications


			% of				% of				% of					% of
			Loan				Loan				Loan					Loan
			Portfolio				Portfolio				Portfolio					Portfolio
	Balance		Class		Balance		Class		Balance		Class			Balance		Class
	(Dollars in thousands)
Real estate mortgage:



Other residential	$	4,001	0.1	%	—		—	%	—		—	%		4,001		0.1	%



Commercial:




Other commercial	1,508		0.2	%	41		—	%	6		—	%		1,555		0.2	%

Total	$	5,509			$	41			$	6				$	5,556


	Nine Months Ended September 30, 2023
	Loan Modifications
	Balances (Amortized Cost Basis) at
	September 30, 2023
									Combination - Term
									Extension and
									Interest				Total Loan
	Term Extension				Payment Delay				Reduction				Modifications
			% of				% of				% of					% of
			Loan				Loan				Loan					Loan
			Portfolio				Portfolio				Portfolio					Portfolio
	Balance		Class		Balance		Class		Balance		Class			Balance		Class
	(Dollars in thousands)
Real estate mortgage:


Other residential	$	15,311	0.3	%	$	—	—	%	$	—	—	%		$	15,311	0.3	%




Commercial:



Other commercial	2,556		0.3	%	41		—	%	6		—	%		2,603		0.3	%
Consumer	15		—	%	—		—	%	2		—	%		17		—	%
Total	$	17,882			$	41			$	8				$	17,931

Finance Receivables - Loan Restructuring & Refinancing Modifications

The following tables present the financial effect of our loan modifications made to borrowers experiencing financial difficulty by type of modification for the period indicated:

Three Months Ended September 30, 2023

Term Extension - Financial Effect

Real estate mortgage:

Other residential

Extended maturity by a weighted average 8 months.

Commercial:

Other commercial

Extended maturity by a weighted average 17 months.

Three Months Ended September 30, 2023

Payment Delay - Financial Effect

Commercial:

Other commercial

Provided 18 months of reduced payments to borrowers without extending the loan term.

Three Months Ended September 30, 2023

Combination - Term Extension and Interest Rate Reduction - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 3.0 years and reduced weighted average contractual interest rate from 11.75% to 7.50%.

Nine Months Ended September 30, 2023

Term Extension - Financial Effect

Real estate mortgage:

Other residential

Extended maturity by a weighted average 10 months.

Commercial:

Other commercial

Extended maturity by a weighted average 22 months.

Consumer

Extended maturity by a weighted average 12 months.

Nine Months Ended September 30, 2023

Payment Delay - Financial Effect

Commercial:

Other commercial

Provided 18 months of reduced payments to borrowers without extending the loan term.

Nine Months Ended September 30, 2023

Combination - Term Extension and Interest Rate Reduction - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 3.0 years and reduced weighted average contractual interest rate from 11.75% to 7.50%.

Consumer

Extended maturity by a weighted average 2.0 years and reduced weighted average contractual interest rate from 9.5% to 2.0%.

Finance Receivable, Loan Modifications, Payment Status

The following table presents the payment status of our loan modifications made during the past nine months with related amortized cost balances as of the date indicated:




	Payment Status (Amortized Cost Basis) at
	September 30, 2023
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:


Other residential	$	6,225	$	7,662	$	1,424	$	15,311



Commercial:


Other commercial	2,599		4		—		2,603
Consumer	17		—		—		17
Total	$	8,841	$	7,666	$	1,424	$	17,931

Troubled debt restructurings on financing receivables

The following table presents our troubled debt restructurings of loans held for investment by loan portfolio segment and class for the periods indicated:


	Three Months Ended September 30, 2022					Nine Months Ended September 30, 2022
		Pre-		Post-				Pre-		Post-
		Modification		Modification				Modification		Modification
	Number	Outstanding		Outstanding		Number		Outstanding		Outstanding
	of	Recorded		Recorded		of		Recorded		Recorded
Troubled Debt Restructurings	Loans	Investment		Investment		Loans		Investment		Investment
	(In thousands)
Real estate mortgage:

Multi-family	—	$	—	$	—	$	1	$	304	$	—
Other residential	10	3,596		1,050		10		3,599		1,053
Real estate construction and land:

Residential	2	422		—		2		422		—
Commercial:

Venture capital	2	1,649		1,649		4		3,330		3,330
Other commercial	2	102		102		21		1,233		1,233
Consumer	—	—		—		1		18		18
Total	16	$	5,769	$	2,801	39		$	8,906	$	5,634

Lease Income of Direct Financing Leases

The following table provides the components of leases receivable income for the periods indicated:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	4,319	$	2,815	$	12,186	$	7,694

Assets and Liabilities, Lessor

The following table presents the components of leases receivable as of the dates indicated:


	September 30, 2023		December 31, 2022
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	256,361	$	232,909
Unguaranteed residual assets	27,371		23,561
Deferred costs and other	2,822		1,815
Aggregate net investment in leases	$	286,554	$	258,285

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The following table presents maturities of leases receivable as of the date indicated:


	September 30, 2023
	(In thousands)
Period ending December 31,
2023	$	18,208
2024	83,442
2025	65,696
2026	47,073
2027	33,038
Thereafter	41,936
Total undiscounted cash flows	289,393
Less: Unearned income	(33,032)
Present value of lease payments	$	256,361

Finance Receivable, Allowance For Loan Losses

The following tables present a summary of the activity in the allowance for loan and lease losses on loans and leases held for investment by loan portfolio segment for the periods indicated:


	Three Months Ended September 30, 2023
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	132,808	$	39,679	$	37,221	$	9,526	$	219,234
Charge-offs	(5,757)		—		(335)		(603)		(6,695)
Recoveries	535		—		1,199		24		1,758
Net (charge-offs) recoveries	(5,222)		—		864		(579)		(4,937)
Provision	8,944		686		(1,411)		(219)		8,000
Balance, end of period	$	136,530	$	40,365	$	36,674	$	8,728	$	222,297
















	Nine Months Ended September 30, 2023
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	87,309	$	52,320	$	52,849	$	8,254	$	200,732



Charge-offs	(39,467)		—		(7,819)		(1,514)		(48,800)
Recoveries	797		—		2,916		152		3,865
Net (charge-offs) recoveries	(38,670)		—		(4,903)		(1,362)		(44,935)
Provision	87,891		(11,955)		(11,272)		1,836		66,500
Balance, end of period	$	136,530	$	40,365	$	36,674	$	8,728	$	222,297

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	—	$	—	$	497	$	—	$	497
Collectively evaluated	$	136,530	$	40,365	$	36,177	$	8,728	$	221,800

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	120,491	$	—	$	4,723	$	—	$	125,214
Collectively evaluated	13,914,000		2,737,537		4,749,707		394,488		21,795,732
Ending balance	$	14,034,491	$	2,737,537	$	4,754,430	$	394,488	$	21,920,946


	Three Months Ended September 30, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	85,896	$	41,169	$	54,031	$	7,609	$	188,705
Charge-offs	(2,610)		—		(1,522)		(520)		(4,652)
Recoveries	231		29		1,996		18		2,274
Net (charge-offs) recoveries	(2,379)		29		474		(502)		(2,378)
Provision	(4,065)		8,474		(3,284)		1,875		3,000
Balance, end of period	$	79,452	$	49,672	$	51,221	$	8,982	$	189,327
















	Nine Months Ended September 30, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	98,624	$	44,508	$	48,718	$	8,714	$	200,564
Charge-offs	(4,323)		—		(5,266)		(1,096)		(10,685)
Recoveries	1,699		178		6,521		50		8,448
Net (charge-offs) recoveries	(2,624)		178		1,255		(1,046)		(2,237)
Provision	(16,548)		4,986		1,248		1,314		(9,000)
Balance, end of period	$	79,452	$	49,672	$	51,221	$	8,982	$	189,327

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	3,108	$	—	$	749	$	—	$	3,857
Collectively evaluated	$	76,344	$	49,672	$	50,472	$	8,982	$	185,470

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	77,503	$	1,408	$	12,973	$	—	$	91,884
Collectively evaluated	15,087,262		3,758,092		8,258,209		464,594		27,568,157
Ending balance	$	15,164,765	$	3,759,500	$	8,271,182	$	464,594	$	27,660,041

Collateral-dependent Finance Receivable

The following table summarizes collateral-dependent loans held for investment by collateral type as of the following dates:


	September 30, 2023						December 31, 2022
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	120,735	$	—	$	120,735	$	90,485	$	—	$	90,485
Real estate construction and land	—		—		—		1,402		—		1,402
Commercial	—		363		363		—		434		434
Total	$	120,735	$	363	$	121,098	$	91,887	$	434	$	92,321

Allowance for credit losses on financing receivables

The following tables present a summary of the activity in the allowance for loan and lease losses and reserve for unfunded loan commitments for the periods indicated:


	Three Months Ended
	September 30, 2023
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	219,234	$	37,571	$	256,805
Charge-offs	(6,695)		—		(6,695)
Recoveries	1,758		—		1,758
Net charge-offs	(4,937)		—		(4,937)
Provision	8,000		(8,000)		—
Balance, end of period	$	222,297	$	29,571	$	251,868


	Nine Months Ended
	September 30, 2023
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	200,732	$	91,071	$	291,803
Charge-offs	(48,800)		—		(48,800)
Recoveries	3,865		—		3,865
Net charge-offs	(44,935)		—		(44,935)
Provision	66,500		(61,500)		5,000
Balance, end of period	$	222,297	$	29,571	$	251,868


	Three Months Ended
	September 30, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	188,705	$	95,071	$	283,776
Charge-offs	(4,652)		—		(4,652)
Recoveries	2,274		—		2,274
Net charge-offs	(2,378)		—		(2,378)
Provision	3,000		—		3,000
Balance, end of period	$	189,327	$	95,071	$	284,398


	Nine Months Ended
	September 30, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	200,564	$	73,071	$	273,635
Charge-offs	(10,685)		—		(10,685)
Recoveries	8,448		—		8,448
Net charge-offs	(2,237)		—		(2,237)
Provision	(9,000)		22,000		13,000
Balance, end of period	$	189,327	$	95,071	$	284,398